Don’t Buy a Life Insurance Policy Unless You Check These Out First

words Al Woods

Buying life insurance has become easier than ever thanks to technology. Today, it’s possible to purchase a whole life insurance policy without even needing a medical exam right from the comfort of your own home. After the COVID-19 pandemic, people became more conscious of the fragility of their own health.

Even if you take all the necessary steps to live well, there’s always a risk something could happen. It brings peace of mind to know your family is protected no matter what.

There is also a major financial benefit to getting life insurance, especially if you’re only in your 30s or 40s. In this case, you have the potential to use your policy to save money and plan for retirement, paying off student debt and other major costs. But there are a lot of companies and options to choose from, and it can quickly become overwhelming. You may reach a point in your search that you just want to buy whatever seems the least complicated. Before you sign off on any life insurance policy, make sure you run through this checklist first.

mature couple

What Type of Coverage Is Available?

There are different types of life insurance to choose from, and if you wind up purchasing a cheaper option, you could wind up poorly covered or missing out on features you thought you had. If you’re interested in using your coverage to settle for a cash payment later, then you’ll have to buy variable or whole life insurance. Whole coverage, also known as permanent life insurance, has both a death benefit and cash value that grows over time. Variable insurance policies invest in stocks, bonds and funds on your behalf, which you can later sell for a profit. Each one has its pros and cons, and you’ll want to make sure you understand all of them thoroughly before buying.

Options for End-of-Life Care

Although no one wants to envision themselves dying anytime soon, it’s important to consider how life insurance would protect your family if you received a terminal diagnosis. Rather than dying from a sudden accident or injury, you could receive a diagnosis that gives you two or less years to live. In this case, there are many pressing financial concerns that you will have to address, and life insurance can help. If you realize that you need money more now for medical expenses and hospice care, you could sell your life insurance in a viatical settlement. You can review this guide on everything you need to know about viatical settlements. While you hopefully never have to use one, it is still important to consider while you’re dealing with the subject of buying life insurance.

Your Health Risks

Certain health conditions are not covered by providers, and you may face a higher premium cost if you have a particular diagnosis or disease. Your lifestyle also plays a role; people who smoke and drink are more likely to pay higher premiums than someone who doesn’t. You could also face higher premiums if you have high blood pressure, a high BMI, or a history of mental illness. You should carefully explore each provider’s coverages and ask them for a quote. Make sure that you are honest; disclose your information, and don’t withhold any information or outright lie. This is considered insurance fraud, and even if you managed to avoid any serious consequences, your death benefit would likely become nullified if you passed away from any condition related to the risks you failed to disclose.

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